LANSING, Michigan – This morning (May 1, 2012), the Michigan Senate Finance committee voted 5-2, along party line votes, to pass SBs 1065-1072, the package of bills which eliminates significant portions of the personal property tax (PPT).
The bills exempt all parcels which have a PPT value under $40,000 from taxes immediately. Then, beginning on 2016, they phase out “eligible manufacturing” personal property taxes over the next six years. The bills exempt hundreds of millions of dollars, and while SB 1072 suggests expiring ax credits will fund a portion of the lost revenue – no specific revenue estimates from Treasury have been produced. So, the exact impact on these bills to each community and other entities which rely on PPT is still unknown.
The bills now move to the Senate floor for consideration. While we are not sure which day the Senate plans on taking these bills up, the Majority Leader has indicated he hoped it is soon. The Michigan Municipal League is part of a coalition of organizations (called Replace Don’t Erase) that is staunchly opposed to these bills. We’ve testified against them and participated in a press conference in opposition to the bills. The coalition has also released a statement about the passage of the bills by the Senate finance committee this morning.
It is imperative that you contact your Senator now and let them know what the impact would be if these bills become law and urge them to vote NO on SBs 1065-1072. For further information, please go to www.replacedonterase.com. Media throughout the state also has voiced strong opposition to these bills calling the package “despicable”, “unacceptable,” “murky”, “a money grab,” “convoluted, “a nightmare for those who have to live through it” and many more colorful adjectives. View the media coverage here.
Summer Minnick is the Director of State Affairs for the League. She can be reached at 517-908-0301 or [email protected].